In This Article:
LVMH Moët Hennessy - Louis Vuitton, Société Européenne (EPA:MC) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of MC, it is a financially-healthy , dividend-paying company with a strong track record of performance. Below, I've touched on some key aspects you should know on a high level. If you're interested in understanding beyond my broad commentary, take a look at the report on LVMH Moët Hennessy - Louis Vuitton Société Européenne here.
Solid track record with adequate balance sheet and pays a dividend
Over the past few years, MC has demonstrated a proven ability to generate robust returns of 21%. Unsurprisingly, MC surpassed the Luxury industry return of 16%, which gives us more confidence of the company's capacity to drive earnings going forward. MC's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This indicates that MC has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. MC seems to have put its debt to good use, generating operating cash levels of 0.71x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.
Income investors would also be happy to know that MC is a great dividend company, with a current yield standing at 1.7%. MC has also been regularly increasing its dividend payments to shareholders over the past decade.
Next Steps:
For LVMH Moët Hennessy - Louis Vuitton Société Européenne, there are three essential aspects you should look at:
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Future Outlook: What are well-informed industry analysts predicting for MC’s future growth? Take a look at our free research report of analyst consensus for MC’s outlook.
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Valuation: What is MC worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether MC is currently mispriced by the market.
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Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of MC? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.